Indonesia: 15 SOEs Go IPO, Get Capital Injection US$4.27M

JAKARTA (TheInsiderStories) - The Indonesian government will carry out various steps and policies for state-owned enterprises (SOEs), said the minister last week. One of his desire os to bring up to 15 SOEs listing their shares in the capital market until 2023 and prepared capital injection Rp62 trillion (US$4.27 billion) for next year.

The minister, Erick Thohir, said apart from the capital injection, the government also sliced the dividend pay out ratios of the SOEs to Rp28 trillion. The stepped, he asserted, to make the SOEs be able to compete with other global players.

He said last week, the number of companies to list the shares ranging from the energy, oil and gas industry, health industry, financial services, food and fertilizer, telecommunication and media, as well as the mineral and coal sectors. In detailed the potential SOEs will go IPO are PT Pertamina International Shipping, PT Pertamina Geothermal Energi, PT Pertamina Hulu Indonesia, PT PT Pembangkit Listrik Tenaga Uap, and PT Pertamina Hilir.

Then, PT Indonesia Healthcare Corporation, PT Bio Farma, EDC and Payment Gateway of HIMBARA, PT Pupuk Kalimantan Timur, PT Dayamitra Telekomunikasi (Mitratel), PT Telkom Data Center, PT Inalum Operating 2. PT Indonesia Asahan Aluminum, and PT Logam Mulia.

Beside, he also issued a new regulation to support the implementation of transferring SOEs assets to the sovereign wealth fund agency, Indonesia Investment Authority, so they can sold their assets to the newly formed investment management institution. Its stated in the SOEs Minister regulation Number PER-03/MBU/03/2021 which was promulgated on March 29.

As reported, various SOEs shares will offer to the global investors through INA. Deputy minister for SOEs, Kartika Wirjoatmodjo, has said, the plans is part of the sovereign wealth fund’ medium-term investment strategy to offers various choice of assets to the investors. Some of the assets are Mitratel and PT Bank Syariah Indonesia Tbk (IDX: BRIS).

The other assets prepared by the ministry are venture capital firms, PT MDI Ventures, PT BRI Ventures, PT Mandiri Capital, also LinkAja and startup companies managed by the SOEs. So far, the government pledged SOEs shares of Rp50 trillion at INA and injected fresh capital Rp10 trillion in the sovereign wealth fund body. The establishment of this institution aimed to seize the investment opportunities and alternative solutions for development financing in the country.

In this year, the new agency is expected to raises new investment around $20 billion. The optimism come after government do their efforts by approached the potential investors, such as United Arab Emirates (UAE), Japan, Britain, Germany, and United States.